Second Regular Session
Sixty-first General Assembly
LLS NO. 980734.01 JAG
SENATE BILL 98149
STATE OF COLORADO
BY SENATOR Thiebaut
FINANCE
A BILL FOR AN ACT
CONCERNING THE REDUCTION OF THE MAXIMUM RATE OF INTEREST
ALLOWED TO BE CHARGED ON CREDIT CARDS.
Bill Summary
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
adopted.)
Reduces the maximum credit service charge allowed
to be imposed on a consumer credit sale made pursuant to a seller
credit card from 1:%
to 13%.
Reduces the maximum loan finance charge allowed to be imposed
on a loan pursuant to a lender credit card from 21% to 15%. Reduces
the maximum loan finance charge allowed to be imposed on a purchase
of goods and services using a lender credit card from 18% to 12%
when the lender does not provide a twentyfive day grace
period for the payment of charges for such goods and services.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 52207 (3), Colorado Revised Statutes, is amended to read:
52207. Credit service charge
for revolving charge accounts. (3) If
the billing cycle is monthly, the charge may not exceed one and
threequarters percent of the amount pursuant to subsection
(2) of this section; EXCEPT THAT, IF THE CONSUMER CREDIT SALE
IS MADE PURSUANT TO A SELLER CREDIT CARD, THE CHARGE MAY NOT EXCEED
ONE AND ONEQUARTER PERCENT OF THE AMOUNT PURSUANT TO SUBSECTION
(2) OF THIS SECTION. If the billing cycle is not monthly, the
maximum charge is that percentage which
THAT bears the same relation to the applicable monthly percentage
as the number of days in the billing cycle bears to thirty. For
the purposes of this section, a variation of not more than four
days from month to month is "the same day of the billing
cycle".
SECTION 2. 53508 (3) (a) and (3) (b), Colorado Revised Statutes, are amended to read:
53508. Loan finance charge for supervised loans. (3) (a) Except as provided in paragraph (b) of this subsection (3),the loan finance charge for a loan pursuant to a revolving loan account, calculated according to the actuarial method, may not exceed twentyone percent per year on the unpaid balance of the principal; EXCEPT THAT, IF THE LOAN IS MADE PURSUANT TO A LENDER CREDIT CARD, THE CHARGE MAY NOT EXCEED FIFTEEN PERCENT PER YEAR ON THE UNPAID BALANCE OF THE PRINCIPAL.
(b) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH
(II) OF THIS PARAGRAPH (b), the finance charge obtained from a
revolving loan account resulting from the purchase of goods or
services may
SHALL not exceed eighteen percent per year on the unpaid balance
of principal, calculated according to the actuarial method; EXCEPT
THAT, IF THE PURCHASE OF GOODS OR SERVICES IS MADE WITH A LENDER
CREDIT CARD, THE FINANCE CHARGE SHALL NOT EXCEED TWELVE PERCENT
PER YEAR ON THE UNPAID BALANCE OF THE PRINCIPAL, CALCULATED ACCORDING
TO THE ACTUARIAL METHOD.
(II) unless
IF the lender provides the debtor the privilege of paying all
charges for the purchase of such
goods or services PURSUANT TO A REVOLVING LOAN ACCOUNT, without
loan finance charge, within twentyfive days after the date
of the statement first reflecting such charges, THE FINANCE CHARGE
OBTAINED FROM THE REVOLVING LOAN ACCOUNT RESULTING FROM THE PURCHASE
OF SUCH GOODS AND SERVICES, CALCULATED ACCORDING TO THE ACTUARIAL
METHOD, SHALL NOT EXCEED TWENTYONE PERCENT PER YEAR ON THE
UNPAID BALANCE OF THE PRINCIPAL; EXCEPT THAT, IF THE PURCHASE
OF GOODS AND SERVICES IS MADE PURSUANT TO A LENDER CREDIT CARD,
THE CHARGE, CALCULATED ACCORDING TO THE ACTUARIAL METHOD, MAY
NOT EXCEED FIFTEEN PERCENT PER YEAR ON THE UNPAID BALANCE OF THE
PRINCIPAL. The lender may condition the exercise of this privilege
upon the debtor's payment of the full balance due as shown on
the statement within said twentyfive days.
SECTION 3. Safety
clause. The general assembly hereby finds, determines,
and declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.